- Hong Kong’s Stablecoin Ordinance requires businesses to obtain licenses before issuing stablecoins.
- The ordinance aims to ensure a transparent and secure environment for stablecoin advertising and market operations.
- Swift stablecoin regulation sets a global standard, positioning the region as a leader in digital asset markets.
Hong Kong has announced that the enforcement of the Stablecoin Ordinance will begin in August 2025. The official announcement indicates that, starting on August 1, 2025, businesses must get a license to issue Hong Kong dollar-backed stablecoins within the region.
In May 2025, the initial version of the ordinance was ready, yet it had to be fast-tracked because of the quick increase in digital currencies. The government wants to create a clear set of rules for managing all actions involving stablecoins. As a result, authorities hope to ensure that businesses and investors can operate in a safe and clear-cut manner.
Enhancing Market Transparency
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, pointed out that introducing a licensing system will help supervise the stablecoin market. With the ordinance, only companies with a license will be allowed to advertise stablecoins, which should cut down on the risk of fraud and guarantee more open promotions. Hui stated that such a regulatory approach is necessary to help the digital asset sector evolve positively in the region.
The government will submit two notices to the Legislative Council on June 11, 2025, as a prelude to enacting the ordinance. These notices mark the start of the process to create a final version of the bill and approve it. Once implemented, this law will bring structure to the field of stablecoins, which should improve Hong Kong’s place among global digital asset centers.
Hong Kong’s Regulatory Leadership
There are also sections of the ordinance that focus on qualified investors. Such investors may issue stablecoins without being licensed, as long as they follow specific criteria. Although clearly outlined rules cover institutional investors, there is still uncertainty about whether retail investors will follow the same regulations or be given the option to issue stablecoins on their own. The government has not provided additional details about these issues for small investors.
Hong Kong is leading the way among Asian markets with its quick regulation of stablecoins. Recently, South Korea has begun considering the release of stablecoins linked to the Korean won. Hong Kong’s fast action gives it an advantage globally, as it ensures that its crypto market is properly regulated and primed for further progress.
The adoption of the Stablecoin Ordinance should create a safe and transparent environment for businesses and investors. It helps develop the cryptocurrency market in the region and strengthens its position worldwide.
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